Google’s parent company, Alphabet, has announced a new investment of £5 billion ($6.8 billion) in artificial intelligence (AI) in the UK. This funding will be allocated for infrastructure and scientific research over the next two years and marks the beginning of several significant US investments coinciding with a state visit from US President Donald Trump.
In an exclusive interview with BBC News, Google’s President and Chief Investment Officer, Ruth Porat, emphasized the opportunities in the UK for advancing scientific research. A $1 billion (£735 million) data center in Waltham Cross, Hertfordshire, is set to be officially opened with the participation of Chancellor Rachel Reeves. In addition, the investment will enhance operations at DeepMind in London, a company led by British Nobel Prize winner Sir Demis Hassabis that focuses on utilizing AI for advanced scientific endeavors.
Porat highlighted the importance of a “special technology relationship” between the US and the UK, acknowledging both the economic potential and the risks involved. She mentioned the UK government’s AI Opportunities Action Plan as a factor influencing this investment but also indicated that there is further work needed to fully capitalize on the growth potential of AI in the economy.
Expectations are that more multi-billion-dollar investments from other US firms will follow soon. Analysts note a strengthening of the pound, which some attribute to anticipated interest rate changes and increased US investment.
Alphabet recently became the fourth company to surpass a market valuation of $3 trillion, joining other major tech firms. Porat noted Google’s shift towards an “AI First” business model, contributing to recent growth in stock prices.
Amid concerns over energy use and environmental impacts, Porat stated that the new facility would be air-cooled and would repurpose heat for local schools and homes. Google has also signed a working agreement with Shell for carbon-free energy for its UK operations. However, Porat acknowledged the challenges of maintaining energy efficiency amid fluctuating renewable sources.
Regarding potential job shifts due to AI, she expressed concern but also pointed to emerging job opportunities in fields like nursing and radiology, asserting that AI is intended to assist rather than replace human roles.
Source: https://www.bbc.com/news/articles/crmek723dz9o?at_medium=RSS&at_campaign=rss